Slide 1: A Leading Portfolio: Interim Results for the six months ended 30 September 2015
A LEADING PORTFOLIO INTERIM RESULTS for the six months ended 30 September 2015
Slide 2: Contents
CONTENTS Accelerate at a glance 01 Highlights for the period under review 03 Financial overview 05 Property portfolio 10 Capital structure 15 Update on Fourways Mall development and refurbishment 17 Capex spend 20 Annexure 1: Breakdown of portfolio 25 Annexure 2: Accelerate’s positioning on the JSE
Slide 3: Accelerate at a Glance
Slide 4: Accelerate at a Glance as at September 2015
ACCELERATE AT A GLANCE AS AT 30 SEPTEMBER 2015 Lp “cane Property portfolio Asset value: R7,65pn Agterskot No further agterskot shares were issued during the period Fourways Precinct: 163 246m? . Charles Crescent - Kramerville: 38 829m* , + Internal asset management function Strategic nodes > Entity
Slide 5: Highlights for the Period Under Review
HIGHLIGHTS FOR THE PERIOD UNDER REVIEW \ \ ——— POLLS ® Sg ox dy etagee - 4 pat : : a\. a! I ae AWA . a yt \ y ACCELERATE
Slide 6: Highlights for the Period Under Review
HIGHLIGHTS FOR THE PERIOD UNDER REVIEW Lp “cane Distribution to shareholders KPMG deal Portside Equity issuance Domestic medium-term note programme Return on equity 30 September 2014 to 30 September 2015 Extension of swap maturities September 2015 distribution: 26,617 cents per share September 2014
Slide 7: Financial Overview
Slide 8: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION 30 September 2014 Statement of financial position ((=xelele)) (R'000) ASSETS Non-current assets 7 847 118 6 256 341 Investment property 7777 631 6 151 810 Derivative financial instruments 69 293 104 426 Equipment 194 105 Current assets 341707 284 413 Trade and other r
Slide 9: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME 30 September 2015 30 September 2014 Statement of comprehensive income (R‘'000) ((=xelele)) (R'000) Revenue, excl. straight-line rental revenue adjustment 417 496 335 796 Straight-line rental revenue adjustment 38 249 9 107 Revenue 455 745 344 903 Property expenses (
Slide 10: Current vs Forecast Distribution Buildup
CURRENT VS FORECAST DISTRIBUTION BUILDUP Actual 30 September 2015 Actual 30 September 2014 (R‘000) (R‘000) Distributable earnings 192 360 141555 Shares qualifying for distribution Number of shares at year-end 758 455 048 668 807 870 Less deferred revenue agreement ceded shares 2 (27768 697) Shares i
Slide 11: Key Ratios Against Previous Results and the Market
KEY RATIOS AGAINST PREVIOUS RESULTS AND THE MARKET 30 September 2015 Key ratios 31 March 2015 Interest-cover ratio 2,95 2,55 Loan-to-value 39,12% an 35,04% Cost-to-income ratio 17,93% a 13,44% Net asset value (Rin) 5,08 a 46 Market cap (Rin) 489 a 4,67 Senior secured rating AA- (za) AA- (za) Senior
Slide 12: Property Portfolio
Slide 13: Sector and Geographic Summary
SECTOR AND GEOGRAPHIC SUMMARY Sector profile by revenue 719% Sector profile by GLA 59% a /accuenart mg Industrial g Industrial = Office m Office 2.7% 3% 2.6% Retail m Retail ™ Specialised retail 12% = Specialised retail 22.7% 26% Geographic profile by revenue Geographic profile by GLA m Gauteng m Ga
Slide 14: Tenant Profile
TENANT PROFILE Tenant profile by revenue mA-grade = B-grade m=C-grade Tenant profile by GLA 16% es /rccncenare mA-grade = B-grade m=C-grade A: Large national tenants, large listed tenants and major franchises, including, inter alia, Absa Bank, ADT, Capitec Bank, Dis-Chem, Edgars, FNB, Foschini, Jet
Slide 15: Lease Expiry Profile, Escalations & Debtors Ageing
LEASE EXPIRY PROFILE, ESCALATIONS & DEBTORS AGEING Lease expiry profile by gross rental Contractual escalations Sept Sept Sept Sept +Sept | zoeentem eran By revenue 2016 2017 2018 2019 2019 Sectoral type 30 September 2015 31 March 2015 Industrial 13% 3.7% 0,5% 0,0% 0,0% Industrial 910% 8,93% Office
Slide 16: Vacancy Profile
VACANCY PROFILE Vacancies as at 30 September 2015 (including structural vacancies) 18 760 13 875 Industrial Office Retail 30 September 2015 Sectoral type Specialised retail 32 636 Total 31 March 2015 a /scenrtar Vacancies as at 30 September 2015 (net of structural vacancies) 13 875 12 757 Industrial
Slide 17: Capital Structure
Slide 18: Long-Term Debt
LONG-TERM DEBT 1800 1500 1200 900 600 300 O Long-term debt funding buckets (Rm) May Dec Sep 16 | Dec 17 =RMB_ minvestec May Aug Dec Sep May 18 19 20 m Standard Bank =DMTN Interest rate swap maturity buckets (Rm) 200 March 16 400 March 17 1600 100 iz March 18 March 19 Long-term debt allocation 30 Sep
Slide 19: Update on Fourways Mall Development and Refurbishment
UPDATE ON FOURWAYS MALL DEVELOPMENT AND REFURBISHMENT Lfssssss
Slide 20: Update on Fourways Mall Development and Refurbishment
Slide 21: Update on Fourways Mall Development and Refurbishment
UPDATE ON FOURWAYS MALL DEVELOPMENT AND REFURBISHMENT A[accessosse Commencement date [iMialixeKe[Ulelux-iural0)ke) Anticipated build time Approximately 3 years Shareholder meeting to be held in Q1 2016
Slide 22: Capex Spend
Slide 23: Capex Spend - Thomas Pattullo and Bela Bela
CAPEX SPEND - THOMAS PATTULLO AND BELA BELA Pecans Upgrade of existing Refurbishment of Thomas Pattullo Bela Bela Shopping Mall Rationale: Driven by Tenant demand (Woolworths Clothing), strong anchor tenants (Pick n Pay, Nedbank and ABSA) and good location Rationale: Strategic Node with new long-ter
Slide 24: Planned Capex Spend
PLANNED CAPEX SPEND Scope: Upgrade to existing centre including tiling, painting, shops fronts and lighting Approximate cost: Fourways View R10m Timing: 2016 financial year Scope: Extension at Woolworths upgrade of facade Approximate cost: R79m Cedar Square Timing: 2016 financial year
Slide 25: KPMG Acquisition Completed
KPMG ACQUISITION COMPLETED Portfolio: 6 A Grade offices, including KPMG head office Single tenant: KPMG Acquisition price: R850m Lease: 15 years triple net Escalation rates: Year 1-le: 8% per annum Year 13 reverts to market less 10% Yield (year 1): 8% Finance: Fully underwritten by Standard Bank Tra
Slide 26: Portside Acquisition
PORTSIDE ACQUISITION Building specifics: P-grade, S-star green rated office & retail building Tenants include: Western Province Health Dept, Zara Labs, China Construction Bank & Petronex Expected acquisition price: R840m Yield (year 1): 7,5% Finance: Fully debt funded Anticipated implementation date
Slide 27: Annexure 1: Breakdown of Portfolio
ANNEXURE 1: BREAKDOWN OF PORTFOLIO ACCELERATE
Slide 28: Top Retail Properties
TOP 5 RETAIL PROPERTIES c re Top 5S retail properties by value* Property name Region Value GLA Fourways Mall Shopping Centre Gauteng 2 273 7793 706 61480 Cedar Square (incl. bulk value) Gauteng 883 390 000 46 025 Fourways View Gauteng 318 970 000 le 962 The Buzz Shopping Centre (incl. bulk value) Ga
Slide 29: Annexure 2: Accelerate's Positioning on the JSE
Slide 30: Forward Yield on Clean Price
10.0% 12.0% 14.0% 16.0% 0.0% 2.0% 4.0% 6.0% 8.0% Fortress B 2.4% Resilient 3.6% Hyprop 4.9% Capital 5.3% Equites 7.4% Sycom 7.5% Growthpoint 7.7% Fortress A 7.9% Redefine 8.3% Synergy A 8.4% Forward yield on clean price Investec 8.5% Dipula B 8.7% SA Corporate 8.3% Emira 8.6% Arrowhead B 8.4% Octode
Slide 31: Share Price - Rands
7.0 Share price - Rands 6.0 5.0 4.0 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Accelerate SAPY index
Slide 32: Market Capitalisation of JSE Property Funds
Rm 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 Growthpoint 67 657 Redefine 51 824 Resilient 44 773 Capital 32 209 Hyprop 29 432 Fortress 26 021 Vukile 11 953 SA Corporate 9 999 Emira 9 118 Arrowhead 8 350 Investec 7 235 Octodec 6 419 Sycom 6 004 Rebosis 5 835 Accelerate 5 138 Dipula 4
Slide 33: 12-Month Rolling Forward Yield vs Price / NAV
12.5% Vunani Delta 11.5% Rebosis Tower 10.5% 12-month rolling forward yield (%) 9.5% Dipula B raatte Ascension A leerat Accelerate Investec SA Corporate Safari Dipula A Octodec Synergy A Emira 8.5% Fortress A Vukile Sycom Equites 7.5% Redefine Growthpoint 6.5% 5.5% Capital Hyprop 4.5% 3.5% 0.7 0.9 1
Slide 34: Key Dates and Investor Relations Contacts
Mond
Slide 35: GREYMATTER & FINCH # 9155
GREYMATTER & FINCH # 9155
Slide 36: Accelerate Property Fund
ACCELERATE PROPERTY FUND